General Mills Inc. announced Wednesday its venture capital arm, 301 Inc, will make a $15 million investment to promote minority- and female-led food businesses.
The donation is funneling through two early-stage venture capital funds, Atlanta-based Fearless Fund and Los Angeles-based Supply Change Capital.
Fearless Fund invests in businesses led by minority women seeking pre-seed, seed-level and Series A financing. Supply Change Capital invests in companies in the food, culture and technology sectors focused on sustainability, health and diversity.
Doug Martin, chief brand and disruptive growth officer at General Mills, said in a statement there's a systemic gap for minority food entrepreneurs seeking early-stage venture capital funding.
"We’re excited to join forces with these amazing partners to uncover and accelerate more founders, at earlier stages," Martin said. "Closing this gap means more great innovation in our food system — from new concepts to emerging food technologies — and more inclusive cycles of opportunity for entrepreneurs, companies and communities.”
Since General Mills reorganized its venture capital arm in June 2021, 80% of 301 INC's investments have gone to minority-led or female-led food businesses.
301 Inc investments include San Francisco-based Grub Market, New York City-based Pet Plate and Largo, Md.-based Everything Legendary.
Last year, Golden Valley-based General Mills (NYSE: GIS) launched a sponsorship program to fund and support small businesses in attaining their Diverse Business Enterprise Certification.
The investment by General Mills comes when numerous organizations in the Twin Cities are making targeted investments to under-represented founders and entrepreneurs.
Last month, Forge North launched the $50 million MSP Equity Fund, which is committed to investing in Minnesota-based startups with minority and female founders. Meanwhile, Tundra Ventures launched its $10 million fund that committed to investing in early-stage, underrepresented founders from diverse backgrounds.
